According to Nikkei, BYD is preparing to launch its Racco electric kei-car in Japan this summer. The model's development involved former Nissan engineer Hirohide Tagawa. The Racco was unveiled to Japanese customers at the Tokyo Motor Show 2025.
The Racco is a compact electric vehicle specifically designed for Japan's kei-car segment. This segment is shaped by strict regulations concerning size, power, and taxation, making it one of the nation's oldest automotive categories. Despite these limitations, kei-cars remain vital in the domestic market due to their efficiency in congested urban environments and low ownership costs.
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Former Nissan product planner and automotive engineer, Hirohide Tagawa, with the BYD Racco kei-car. *Photo: BYD, Cnet*
Hirohide Tagawa, a former Nissan product planner and automotive engineer, worked for the company for about 25 to 30 years. He joined Nissan in the 1990s and was closely involved in the company's kei-car development strategy across multiple generations.
Internally at Nissan, he was known as a "small car visionary," contributing to the planning and product development of key compact models, including the Nissan Dayz and Sakura, as well as Nissan's dedicated electric kei-car program.
The Sakura, launched in 2022, marked Nissan's transition into the mass-market electric kei-car segment, while the Dayz line represents one of the company's core domestic kei-car platforms.
According to industry sources, Tagawa later departed Nissan and became involved in electric vehicle development projects for the Japanese market with BYD Japan.
Tagawa's kei-car expertise is central to BYD's strategy for entering the Japanese market. The Racco represents the automaker's first effort to join Japan's kei-car segment with a model specifically designed to meet local regulatory requirements, rather than simply adapting an existing global electric vehicle platform.
Kei-car development in Japan is a highly specialized engineering field. It demands rigorous optimization for packaging efficiency, cost structure, and regulatory compliance, all while maintaining usability in congested urban traffic conditions.
Tagawa's extensive experience from Nissan's long-standing kei-car programs places him among the rare engineers with deep expertise in Japan's most structurally restricted automotive segment.
The Racco features a 20 kWh LFP battery, offering a range of approximately 180 km according to WLTC standards. It supports DC fast charging up to 100 kW and comes with a standard L2+ driver assistance system.
The vehicle features sliding rear doors and a tall body design, facilitating easy navigation through narrow streets and tight parking conditions common in Japanese cities.
Some predictions suggest the Racco's starting price will be around 2,5 million yen (15,700 USD), positioning it within a popular vehicle price segment in Japan.
BYD entered the Japanese market in 2023 and currently sells the Dolphin, Seal, and Yuan Plus (Atto 3) models, with the Sealion 7 expected to follow.
The Racco is BYD's second model designed specifically for an overseas market, following the Shark hybrid pickup in Mexico. This launch is part of the company's ongoing efforts to expand internationally.
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